MW: U.S. stock futures waver with Apple earnings ahead
Wall Street was poised for a mixed open on Tuesday, as U.S. stock futures struggled for direction on a light data day likely to be dominated by high-profile earnings reports.
Futures for the Nasdaq 100 index NQU5, +0.14% added 5.75 points, or 0.1%, to 4,677, on track for a fourth straight session in record territory. The benchmark ended at an all-time closing high on Monday as markets extended a recent relief rally, which has been spurred by better-than-expected earnings and progress in Greece’s bailout saga.
Futures for the Dow Jones Industrial Average YMU5, -0.05% slipped 9 points, or 0.1%, to 17,994 on Tuesday, while those for the S&P 500 index ESU5, +0.00% gained 0.60 point, or less than 0.1%, to 2,122.60.
On a quiet day on the data calendar investors were focusing on earnings, with Apple Inc.’s AAPL, +1.89% third-quarter earnings report, due after hours, among the highlights. The iPhone maker is projected to report fiscal third-quarter earnings of $1.81 a share, up from $1.28 a share a year earlier, according to FactSet estimates.
“A decent set of numbers from Apple could send the S&P500 to new highs. But there is a distinct lack of breadth, only 57% of stocks are trading above the 200-day moving average. For the moment, it’s about buying risk, the greenback and maintaining a bearish stance on resources,” said Will Hedden, senior sales trader at London Capital Group, in a note.
Commodities have been hit hard recently by a strong dollar, and gold in particular has been sold off sharply. The metal GCQ5, -0.08% fell for an eighth straight session on Monday, pushing prices to their lowest level in more than five years.
Gold prices took a breather and barely budged on Tuesday, while the broader metals complex traded mixed.
The ICE dollar index DXY, -0.18% traded 0.2% lower at 97.84.
Earnings: On a busy day on the earnings front, United Technologies Corp. UTX, -0.23% reports before the bell. The Dow component is forecast to report second-quarter earnings of $1.71 a share, according to FactSet estimates.
Fellow Dow company Travelers Cos. Inc. TRV, -0.32% is also reporting premarket, expected to post second-quarter earnings of $2.12 a share, up from $1.93 a share a year ago.
Verizon Communications Inc. VZ, +1.07% and Harley-Davidson Inc. HOG, -0.04% are also on the docket in the morning hours.
After the market closes, several prominent tech earnings arrive. Microsoft Corp. MSFT, +0.64% is forecast to post fiscal fourth-quarter earnings of 56 cents a share, up from 55 cents a share a year earlier.
Yahoo! Inc. YHOO, -0.35% is expected post second-quarter earnings of 18 cents a share, down from 37 cents a share a year earlier.
GoPro Inc. GPRO, +7.34% and fast-food chain Chipotle Mexican Grill Inc. CMG, +2.42% also report after the close.
Economic data: No major releases or Federal Reserve speakers are scheduled for Tuesday.
Movers & shakers: Shares of International Business Machines Corp. IBM, +0.41% dropped 5% in thin premarket trade after the tech company late Monday reported a 17% drop in second-quarter earnings.
Shake Shack Inc. SHAK, +3.49% could also be active after the burger chain said a few of its shareholders are offering 4 million shares of Class A common stock.
Shares in Qualcomm Inc. QCOM, -0.85% could be active after a report the mobile chip maker will look at the possibility of a breakup.
Other markets: Europe’s Stoxx 600 index SXXP, -0.09% inched lower after logging a nine-session winning streak on Monday, the longest since April 2014. Asian stock markets closed mostly in positive territory. Crude-oil futures CLQ5, +0.00% slipped, trading just above $50 a barrel after dipping below that level in earlier trade Tuesday.
